CRS Reporting For NRIs

As an NRI with an Indian bank account, mutual fund investments, or property, there is a very good chance that the tax authorities already know about all of this. This is not a coincidence; this is the Common Reporting Standard (CRS) at work.

The CRS is the global framework through which more than 110 countries automatically share financial account information with one another every year. As an NRI, understanding how this framework works is essential to stay 100% compliant across borders, avoiding penalties, and ensuring your investments in both countries are aboveboard.

In this guide, we will understand CRS in simple language, how it impacts you as an NRI, and what you need to do right now.

What is the Common Reporting Standard (CRS)?

CRS, an abbreviation for the Common Reporting Standard, is an OECD initiative adopted in 2014. Under the initiative review, financial institutions such as banks, mutual fund houses, brokers, and agencies are to provide services to account holders who are tax residents of another country and automatically repatriate their account details to the tax authority of their home country.

You can think of CRS as a global data-sharing agreement. For instance, if you are an NRI living in the United Kingdom and hold an NRO account in India, your Indian bank will report your entire account balance, the interest you have earned, and other key financial details to the Income Tax Department of India, which then will automatically share the entire data with the HMRC (Tax Authority Of UK) every year, without you doing anything.

India signed the OECD Multilateral Competent Authority Agreement (MCAA) in 2015, making CRS compliance a non-negotiable for every Indian financial institution.

CRS vs. FATCA: What Is the Difference?

NRIs encounter both terms, and the following is the key difference.

In a nutshell, if you live in the US, FATCA applies to you. Whereas if yoy live in the UK, Canada, Singapore, UAE, Australia, or any of the other 100+ CRS countries, CRS is the framework that governs the information sharing about your Indian accounts.

How Does CRS Work For NRIs? Step By Step

Here's what actually happens every year:

Step 1: Self-Declaration at Account Opening: When you open an NRE, NRO, or FCNR account in India, or in any of the Indian investment industries, such as mutual funds, the financial institution will collect a CRS self-certification form as part of your KYC process. You declare your country of tax residency and provide your tax identification number (TIN) for that country.

Step 2 - Due Diligence By The Financial Institution: The bank or mutual fund company reviews your account information, validates your TIN, and classifies your account as "reportable" if your tax residency is in a CRS-participating country.

Step-3: Annual Reporting To The Indian Tax Authority- Every year by 31 May. An Indian financial institution files Form 61B with the Indian Income Tax Department (CBDT), detailing all reportable accounts, including account balances, interest/dividends earned, and proceeds from the sale of financial assets.

Step 4 - Automatic Exchange With Your Home Country - The Indian income tax department will then automatically send this data to the tax authority of your country of residence under the CRS regulatory framework. Your joint country's tax authority will receive your Indian account details, and India's tax department will not need to take any additional steps.

What Information Gets Shared Under The CRS?

For each reportable account, the following key information is transmitted.

• The name, address, and date of birth of the account holder.
• Tax Identification number and the country of tax residency.
• Account number and the name of the reporting financial institution.
• Account balance or the year-end values.
• Total interest, dividends, or other income credited during the year.
• Total proceeds from the sale or redemption of financial assets.

This further covers your NRO accounts, NRE accounts, FCNR accounts, mutual funds folio, insurance policies, bonds, or demat accounts you hold in India.

The real-world impact: If you have an NRO fixed deposit in India, earn at least Rs 80,000 in interest annually, and are a tax resident of Canada, the CRA (Canada Revenue Agency) will automatically receive this information and may expect you to declare it on your Canadian tax return.

Who Is Exempted From CRS Reporting In India

Not all NRI accounts in India are automatically reported. There are some examples

• Low-value individual accounts (pre-existing accounts below USD 1 million) may undergo simplified due diligence, but they remain subject to reporting if the identity indicates foreign residency.
• Accounts held by government entities, international organizations, and central banks are generally excluded.
• Accounts held by the listed company and its related entities may be excluded.

However, for a vast majority of the NRIs with a standard bank account, investment, or investments, there is no meaningful exemption in such cases. If your tax residence is outside of India, your account will be reported.

CRS Self Declaration - What NRIs Must Do

As an NRI, if you open a financial account or are an existing account holder with an incomplete CRS declaration, you must submit a CRS self-certification form. This includes:

• Your name and your current address in your country of residence.
• Your country (or countries) of tax residency
• Your Tax Identification Number (TIN) is issued by your country of residence (e.g., SSN in the US, UTR in the UK, SIN in Canada, TFN in Australia).
• Declaration that the information provided is absolutely accurate.

What happens if you do not submit a CRS declaration?

Indian financial institutions must treat accounts with missing or incomplete CRS declarations as potentially reportable. Your account could be frozen, restricted, or flagged for the next transactions until the declaration is updated. Other tax obligations of NRIs have their mutual Fund account due to incomplete CRS/FATCA declarations.

CRS 2.0: Major Changes Effective January 2026

The CRS regulatory framework is being developed. The OECD finalized the major amendments to the CRS in the 2023 community, known as CRS 2.0, which took effect on 1 January 2026 in most participating countries, including India. India's Income Tax Department issued the Income Tax Rules 2026 (Rules 238-244) in February 2026, which codifies the new CRS 2.0 framework under the Income Tax Act 2025, effective from April 1, 2026.

The Key Changes Under CRS 2.0 include

1: Crypto Assets Now covered: One of the biggest changes is that the CRS 2.0 expands reporting to include crypto assets, Electronic Money Products (EMPs), and the Central Bank Digital Currencies (CBDCs). If you have been holding cryptocurrency on a foreign exchange platform, that platform may be required to report the holding to India under the parallel Crypto Asset Reporting Framework (CARF).

India's new rules 241-244 specifically introduced the reporting obligations for the current assessment service provided through Form 167, which must be filed annually.

2: Residence by Investment Schemes Flagged: The CRS 2. O specifically targets taxpayers who use the golden visa or citizenship-by-investment (CBI) programs to create multiple tax residences and reduce their reporting obligations. Such structures will now face enhanced scrutiny and better due diligence.

3: Stronger Due Diligence Requirements: The Financial institutions must now do more rigorous TIN validation, enhanced entity classification, and improved identification of controlling persons in the trusts and passive holding structures.

Penalties for Non-Compliance

The consequences of ignoring the CRS obligation can be quite serious in both India and your residential country.

In India (for financial institutions), the new penalty framework will be effective by April 2026.

• Rs 500-Rs 1,000 per day for late filing of Form 61B.
• Rs 50,000 for filing inaccurate information or failure to correct the errors.
• Loss of FATCA-compliant status, which can trigger a 30% US withholding tax on US source income for institutions.

For NRIs in their home country: If your home country's tax authority receives CRS data showing Indian income you have not declared, you may face consequences, such as:

• Back taxes plus the interest on undisclosed Indian Income.
• Significant penalties for the non-disclosure (varying by country can be substantial.
• In the US specifically, the FBAR penalties of up to $10,000 per account per year (or higher for willful violations) and the FATCA Form 8938 penalties start at $10,000.

The Practical Actionable Steps For NRIs

Here is what you should do to stay compliant.

1: Update Your CRS Declaration: You must contact your Indian bank, mutual fund company, and the financial institution to ensure your CRS self-certification is current and reflects your correct country of tax residence and TIN.

2: Declare the Indian Income in Your Home Country's Tax Returns: The interest earned on your NRO account, rental income from Indian property, dividends from the Indian stocks, all of this may be taxable in your country of residence. Use DTAA (Double Taxation Avoidance Agreement ) Provisions to avoid paying tax twice on the same income source.

3: Check if Your Home Country Received CRS Data: Many countries now allow you to check your foreign income pre-fills or notices. If your home country's tax authority has data that does not match your filed return, you may receive an inquiry.

4: Convert Resident Accounts to NRO/NRE: If you became an NRI but still hold a regular resident savings account in India, convert it immediately. Holding a resident savings account as an NRI violates FEMA regulations and creates additional compliance exposure.

5: Prepare for Crypto Reporting: if you hold crypto assets on foreign exchanges, be aware that the CRS 2.0 and the CARF are bringing these into the reporting net from 2026. Maintain the transaction records in detail.

CRS Reporting Deadlines At A Glance

The following provides a summary of the CRS reporting deadlines at a glance.

The Bottom Line

The CRS (Common Reporting Standard) has transformed international tax compliance from a voluntary exercise to an unavoidable reality. With over 110 countries sharing data automatically, the day of quietly holding undisclosed Indian accounts while living abroad, or vice versa, is effectively over.

For NRIs, the best approach is to keep your CRS declarations up to date, declare Indian income in your country of residence using the applicable DTAA benefits, and stay ahead of the new CRS 2.0 rules on crypto and digital assets.

However, as an NRI, whenever you are in doubt, consult a CA or an international tax advisor with expertise in NRI cross-border taxation; it is well worth the consultation fees. Savetaxs is a platform trusted by NRIs from 90+ countries. Connect with us as we serve our clients 24/7 across all time zones.